OECD Projects RI Economic Growth at 4.9%

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  • TEMPO.CO, Jakarta - The Organization for Economic Co-operation and Development (OECD) estimates that Indonesia's economy will only grow by 4.9 percent in 2015. The low estimate is based on the fact that the country is experiencing inflationary pressures that hampers potential monetary stimulus.

    The France-based organization of developed countries exposed its projection over Indonesia's economy when publishing its 'OECD Economy Outlook 2015' yesterday.

    Indonesia's gross domestic product is predicted to grow only 4.9 percent in 2015 before bouncing back towards 5.5 percent in 2016.

    Weak commodity market is dubbed as the main reason hampering growth, with low prices pressing down on export performances and inhibiting investment flows.

    The Indonesian economy is estimated to grow faster in 2016, provided the government executes its development plans well.

    Meanwhile, Bank Indonesia's budget meeting last week predicted this year's economic growth rate at 5.1 percent.